DECLARATION

We, hereby declare that this project entitled Brand representation of Parle Products in unorganized retail stores (i) as compared to competitors (ITC, Britannia & Priyagold). (ii) as compared to organized retail stores(iii)Analysisi of consumer behviour, is a bonafide record of work done by us during the course of summer internship and that it has not previously formed the basis for the award to us, for any degree/diploma associate ship, fellowship or other similar title, any other institute/society.

Date:

NIKHIL VAID RAGHVENDRA SINGH

ACKNOWLEDGEMENT
A successful completion of job is based upon the chain of factors combining together to make an integral outcome. The cooperation of the factors mixed with sincere effort can lead to best performance. Our project is also no exception to this. So it becomes necessary to mention this before we start writing the study report. We take this opportunity to express our deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work. We would like to place on record, our sincere gratitude to Mr. Manoj Dogra (Area Sales Manager, Parle Products Pvt. Ltd) for giving us support, guidance & opportunity to do our summer internship with Parle Products Pvt. Ltd. Last but not the least, our wholehearted thanks goes to the retailers and wholesalers and consumers with whom we interacted and all those people who indirectly or directly helped us.

NIKHIL VAID RAGHVENDRA SINGH

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TABLE OF CONTENTS
S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. CONTENTS Executive Summary Statement of the Problem Objectives of the Study Limitations of Study Introduction of Sector and Industry Introduction of organisation Analysis on unorganized retail outlets Analysis of organized retail outlets Analysis on Consumer Behaviour SWOT Analysis Findings Recommendations and Suggestions Conclusion Appendix Bibliography

Executive Summary
The report is an earnest endeavor made to understand the present market scenario in biscuits captured by the Parle and the other competitor brands viz., Britannia, Priyagold, ITC. The researchers were required to see the coverage by Parle Products Pvt. Ltd., and bring out the potential and loyal retailers so that the company could maintain the market leadership in the existing business scenario in the biscuits and the confectionaries. During the course of study the researchers visited around 410 unorganized retail stores and 30 organized retail stores and analyzed all major brands of biscuits available as well as studied the brands, which are most preferred among the retailers. The study encompasses the penetration of the existing Parle products (biscuits and confectionaries) and the market potential for the new products like Golden Arch, Nimkin, Monaco Funion, Melody softee, Mazelo and Imli Bite. Their motive was to study the working of the distributors in Jaipur market. They have mentioned the problems and the loop holes in the Parles distribution system and the promotional tools, which they have found during the course of the study and recommended various corrective measures for it. Their study also comprises the comparative analysis between organized and unorganized retail stores in terms of brand availability with the help of hypothesis testing. They also studied the behaviour of consumers about their preferences for biscuits, candies and their overall buying behaviour with the help of questionnaire.

Statement of the Problem

To analyze the brands of Parle Products in unorganized retail stores: 1. 2. As compared to competitors (ITC, Britannia & Priyagold). As compared to organized retail stores.

Objectives of the Study

1. To find out Parle Coverage in various areas of Jaipur.

2. To check the Brand availability of the company products at different

stores.
3. To compare the Brand with its competitive Brands like ITC, Britannia,

Priyagold in terms of coverage, number of brands available and monthly sales. 4. To analyze that which type of biscuits and candies are most preferred and demand by the customer. It was done by asking storekeepers as well as customer. 5. To analyze the availability of new Parle products launched in the market.
6. To compare the organized retail stores with unorganized retail stores in

terms of brand availability.

Reference Period
This study is conducted for the period of 45 days starting from 15th of JUNE 2009 to 30th of JULY 2009.

PROJECT METHODOLGY

Research Type:
EXPLORATORY RESEARCH EXPLANTION: The study was conducted by Parle Products Pvt. Ltd in 6-7 areas of Jaipur mentioned below (source list) for the first time regarding market review and comparative analysis between unorganized and organized retail stores.. Thus it is an exploratory type of research.

Sample Design
A sample design is a definite plan for obtaining a sample for a given population. It refers to a techniques or procedure adopted in selecting items for the sample.

Sampling:
Further, the design that has been adopted for the study of the given topic is CONVENIENT SAMPLING. EXPLANATION: During the course of the study we visited a no. of stores that were scattered all over Jaipur (source list mentioned below). Apart from this we had no written record of the number and names of the stores in the city. It was very difficult to tabulate a record of all the retailers and wholesalers present in the city and then carry out our study, in the short span of time that was allotted. As a result we had to select the retailers according to our convenience. We went to the areas and surveyed all shops that could possibly be approached.

The following is the sample design that has been adopted for the study.
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1. Population:- Finite(Jaipur) 2. Sampling Unit:- Areas of Jaipur 3. Source list:Unorganized retail stores (Areas): a. Mansarover b. Vaishali Nagar c. Chitrakoot d. Sodala (Ajmer Road, Hatwara road, Ram Nagar) e. Raja park f. Adarsh Nagar g. Janta colony h. Sethi colony i. Bapu Nagar Organized retail stores: a. Spencer`s Retail b. Reliance Retail (Reliance Fresh) c. Aditya Birla (More) d. Vishal Mega Mart 4. Sample size:- A total of 410 unorganized retail stores with 30 organized

retail stores and 100 consumers.

Tools and techniques for Data Collection

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Tools and techniques for:

1. Primary Data:- The researchers collected primary data during the course

of research period with the help of the questionnaire that was designed for the storekeepers as well as consumers to collect the information that was required to carry out the research.
2. Secondary Data:- Secondary data was collected from books, articles,

Internet and previous research papers that had been conducted by the company representatives and officials.

Tools and techniques of Analysis

Simple statistical tools and techniques like average, ratios, pie charts, tables and graphs in addition to hypothesis testing (z-test, for difference between proportions) & factor analysis method are used to analyze the data.

Limitations of the Study

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1) The study was conducted in 45 days that is not enough for such a vast topic.
2) It was difficult for the storekeepers to pinpoint the sales of a particular

brand in both organized and unorganized retail stores. 3) No proper data was available about the stores in the city. 4) There were not a big number of organized retail stores in Jaipur to carry out the research more efficiently.
5) As the nature of research was exploratory so it was difficult to cover each

and every retailer. 6) Many retailers dont express their original perception and views because of biasness.

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INTRODUCTION
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SECTOR
Fast moving consumer goods (FMCG), are products that are sold quickly at relatively low cost, have a quick turnover and get replaced within a year. Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergent, as well as non durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG also includes pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. Some of the best known examples of Fast Moving Consumer Goods companies include Clorox, ColgatePalmolive, General Mills, H.J. Heinz, Reckitt Benckiser, Sara Lee, Nestle, Unilever, Proctor and Gamble, Coca Cola, Carlsberg, Kimberly-Clark, Kraft, Pepsi, Warburtons, Wilkinson and Mars. Scope of the sector: The Rs 86,000-crore Indian FMCG sector is expected to maintain its double-digit growth for the quarter ended March 31, 2009. Being a sector led by domestic growth, it is least likely to be affected by the financial meltdown. The FMCG industry is set to grow 20-30 per cent in 2009-10, up from 10-20 per cent in 2008-09. The growth would be driven by the launch of new products and increasing rural consumption. A well established distribution network, intense competition between the organized and unorganized segments characterizes the sector. The introduction of goods and services tax (GST) in Union Budget 2009 by April 1, 2010, may help FMCG companies save on distribution costs, remove multiple taxes and bring down prices in the long run. Though the hike in minimum alternate tax from 10% to 15% would adversely hit companies with factories in excise-free zones, they rule out increasing consumer prices.

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Retail sector: Retail became a buzz word in India before recession; in fact the word 'booming' was found only attached to this sector. But as recession took its toll, 99% of sectors went for a toss including retail. The market has just started picking up and India is reclaiming to regain its position in the retail segment. In a recent report, the authors of AT Kearney's 2009 global retail development index said that India's largely unmodernised retail sector remained attractive to both domestic and international retailers, in spite of government regulations that prevent 100 per cent foreign ownership of retail stores. For most of the retailers like Pantaloon, Vishal, Cantabil and Priknit, retail still continues to buzz everywhere in India with many foreign brands coming in, whether it's the largest US retailer Wal Mart which opened its first store, last month, in Punjab, in a joint-venture with Bharti Enterprises, Or Tesco and Carrefour which are also planning joint venture stores.

Even as corporates are expecting the new Congress-led United Progressive Alliance Government at the Centre to open up fully FDI in retail sector, a Parliamentary Committee has argued for a total ban on even the domestic heavyweight corporates from entering retail trade in grocery, fruits and vegetables. Also, there is expectation the forthcoming Union Budget may spell out a policy position. Retail giant Ikea holding back its plans to enter India is being bandied about as a setback for the country. There is also talk that investments and flow of technical knowhow could be hampered if the sector is not opened up to overseas.investors. But over all if we see, the issue to be debated shouldn't be whether FDI in organized retail is desirable, but what its impact would be on small retailers in

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the unorganized sector, and whether we have policies to protect the vulnerable sections. It was meant to revolutionize the way we shopped, spent, consumed and lived. With its Retail Revolution, India was making an indelible mark on the global retail map. The billion plus consumers and steady economic development were fuelling the growth of Indias $ 25 billion organized retail market. And the Indian blue chip companies started to go the retailing way Bharti, Reliance, Tata, Mahindra, Aditya Birla Group and RPG all were making the retail foray. As the sector grew at the rate of 30-40% per annum over the last decade, India became the preferred destination for global brands and retail chains to cash in. But with the Q3 growth for FY2008-09 at 10-12% as against 35% of the previous year accompanied with closures of Indian retailers, pulling out from certain cities and the Subhiksha saga unfolding, the dismal story of revolution is now unraveling. Organised Retail Sector: It was meant to revolutionize the way we shopped, spent, consumed and lived. With its Retail Revolution, India was making an indelible mark on the global retail map. The billion plus consumers and steady economic development were fuelling the growth of Indias $ 25 billion organized retail market. And the Indian blue chip companies started to go the retailing way Bharti, Reliance, Tata, Mahindra, Aditya Birla Group and RPG all were making the retail foray. As the sector grew at the rate of 30-40% per annum over the last decade, India became the preferred destination for global brands and retail chains to cash in. But with the Q3 growth for FY2008-09 at 10-12% as against 35% of the previous year accompanied with closures of Indian retailers, pulling out from certain cities and the Subhiksha saga unfolding, the dismal story of revolution is now unraveling.

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INDUSTRY
Indian Biscuit Industry: According to Indian Biscuit Manufacturers' Association (IBMA), after stagnating growth of about 14 per cent in 2006-07, biscuit industry grew by 17 per cent in 2007-08 due to excise duty exemption on biscuits with MRP up to Rs 100 per kg, Indian Biscuit Manufacturers Association. ). Therefore, Indian biscuit industry has demanded a reduction in value added tax to four per cent from the current level of 12.4 per cent on biscuit, so that the growth rate can go up to 20 per cent. The Rs 8,000-crore industry hopes that the biscuit segment will have over 20 per cent annual growth in the next five years if VAT is reduced to four per cent India, world's third largest biscuit producer after the US and China, produces nearly 19.5 lakh tonnes annually and the states, however, have imposed the VAT at 12.5 per cent, which is very high. According to IBMA, organised sector produces around 55% and the balance 45% being contributed by the unorganised bakeries. In terms of volume biscuit production by the organised segment in 2006-07 is estimated at 1.47 million tonnes. Per capita consumption of biscuits in the country is only 1.8 kg, as compared to 2.5-5.5 kg in the South Eastern countries, and in Europe and US, respectively. In India per capita consumption of biscuits is estimated at a low 1.9 kg, reflecting the huge potential for growth of the industry. Over 900 million Indians buy and eat biscuits with varying frequency in any year. The penetration of branded product in this segment is quite significant, and is valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as developed as the biscuits industry. The biscuit segment has developed with large markets of mass consumption covering over 90% of the overall potential market. The unorganised sector accounts for over 50% of the market. The market has been growing at a CAGR of 6-7% pa.
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Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs 750. Bread and biscuits are the major part of the bakery industry. Biscuits stands at a higher value and production level than bread. India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products. The annual production of biscuit in the organized sector continues to be predominantly in the small and medium scale sector before and after dereservation. Confectionary Industry Production area Besides the industrial areas in leading metropolis the bakery product & confectionery are carried on small- scale basis also at household level. Whereas, the confectionery industry has developed remarkably with the international brand mingling with the domestic market toffees, chocolates etc. produced at large scale in important industrial regions of the country.

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Growth promotional activities In 1977- 78 Government reserved the confectionery bread and biscuit manufacturing for small scale and restricted entry of large producers. During the last 2 decades, small and unorganized players shared the growth in the industry. Currently, there are an estimated 2 million bakeries across the country engaged in production of bread, biscuits and other products The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates, mints and chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy, toffees and other sugar-based candies, is the largest of the segments and valued at around Rs 2,000 crore. The confectionery industry has a current capacity of 85, 000 tonnes, the market is growing at the rate of 10-15% per annum. The estimated annual production of bakery products in India is in excess of 3 million tonnes, of which bread accounts for nearly 50% and biscuits 37% in volume terms in the organized sector. The bakery sector in India is one of largest segments of the food processing industries; annual turnover in value terms is approximately $ 900 million. Types Chocolates, hard-boiled sweets, chewing gum and other products are a major growth area. The bakery industry includes basic baked products like breads, biscuits, cakes, pastries, rusks, buns, rolls etc. The Confectionery Industry in India was a closely held business potential for several decades in the past predominantly driven by cost factors and limited market and consumer perceptions. Confectionery product being an impulse generated demand exercise was more dependent on trade push and intermittent consumer pull thereby resulting in very narrow spectrum of brand activity. The retail and market penetrations even today continue to be in the rural and semi urban and urban markets where bulk of the sales activity takes place through B and C class outlets. Confectionery being a child-oriented product, it is largely
18

sold by individual counts at the retail trade level. The potential child consumer for this category of products in the past was largely influenced by the relevant socio-economic factors and media explosions.

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20

Organization
Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute baby photo containing 10-12 biscuits with the companys name printed with in Red. Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. Yes, the size of their packing has definitely changed but for the consumer good as these are money saver pack. The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up on Parle biscuits and sweets. Initially a small company was set up in the suburbs of Mumbai city to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded by adhering to high quality and improvising from time to time A decade later, in 1939, .Parle products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. For around 75 years, Parle have been manufacturing quality biscuits and confectionary products. Over the years Parle has grown to become a multimillion dollar company with many of the products as market leaders in their category. The recent introduction of Hide & Seek chocolate chip biscuits is a product of innovation and caters to a new taste, being Indias first ever chocolate chip biscuits. Apart from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants in the country. Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract.
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All these factories are located at strategic locations, so as to ensure a constant output and easy distribution. Brands An in-depth understanding of the Indian consumer psyche has helped Parle evolve a marketing philosophy that reflects the needs of the Indian masses. With products designed keeping both health and taste in mind, Parle appeals to both health conscious mothers and fun loving kids. The great tradition of taste and nutrition is consistent in every pack on the store shelves, even today. The valuefor-money positioning allows people from all classes and age groups to enjoy Parle products to the fullest. Biscuit goodies: Parle-G Krackjack Monaco Monaco Funion Kreams Hide and Seek Hide and Seek Milano Bourbon Parle Marie Milk Shakti Parle 20-20 Cookies Nimkin Confectionary:
GolGappa Classic Mint Lite Mint Kismi Orange Candy Mango Bite Melody Poppins Eclairs- 50 p Melody Softe- 1Rs. Kismi Bar Chox Kacha Mango Mazelo Imli Bite Kismi Gold

Munch on snacks: Musst Bites

Parle biscuits: Parle biscuits are linked with factors of power and wisdom providing nutrition and strength. Parle biscuits are indeed much more than a teatime snack, they are considered by many to be an important part of their daily food. Parle can treat you with a basket of biscuits which are not only satisfying but are also of good and reliable quality. Parle biscuits cater to all tastes from
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kids to senior citizens. They have found their way into the Indian hearts and homes. Parle G

For over 65 years, Parle G has been a part of the lives of every Indian. From the snow capped mountains in the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle G has nourished strengthened and delighted millions. Filled with the goodness of milk and wheat, Parle G is not just a treat for the taste buds, but a source of strength for both body and mind. Tear over a packet of Parle G to experience what has nourished Generations of Indians since last sixty five years, making it truly Hindustan Ki Taakat. Pack Sizes available: 16.5G, 38.5G, 60.5G, 82.5G, 99G, 209G, 313.5G, 418G, 825G

Krackjack

The original sweet and salty biscuit is one of the most loved biscuits in the country.
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Its not just a biscuit, its the taste of relationships captured in a biscuit. A little sweet and a little salty crafted in such a delicate and delicious balance, you can never get enough of it. Have it anytime you like with anything you like. Pack Sizes available: 75G, 170G, 240G

Monaco

Share the company of great taste anytime, anywhere with Monaco. A light crispy biscuit sprinkled with salt, Monaco adds a namkeen twist to lifes ordinary moments. Pack Sizes available: 75 G, 120 G, 240 G

Hide and Seek

The ingredients that go into making this prized cookie are a well-guarded secret. What is is the effect it has on those who eat it. A cookie with a reputation for romance. Indulge in the sinful taste of Milano and everything that follows it. Pack Sizes available: 25 G, 62 G, 100 G, and 200 G Hide and Seek Milano

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The ingredients that go into making this prized cookie are a well-guarded secret. What is is the effect it has on those who eat it. A cookie with a reputation for romance. Indulge in the sinful taste of Milano and everything that follows it. Pack Sizes available: 65 G, 135 G Kreams

Orange: Tickle your senses with Parle Orange Kream The tangy orange cream between two scrumptious biscuits makes for a real treat. Age no bar! Pack Sizes available: 80 G, 90 G, 160 G, and 180 G Parle Confectionaries: Right from candies to toffees, the sweet 'n' treat category of the Parle product range is a genuine treat for every snack lover. This category can satisfy one's taste and at the same time create a desire for more. These confectioneries are a sheer delight to the taste buds and have a universal appeal. Parle Biscuits and confectioneries, continue to spread happiness & joy among people of all ages.
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Melody

Caramel meets chocolate to yield an outcome nothing less than delectable. Parle Melody comes with an irresistible layer of caramel on the outside and a delightful chocolate filling within. Pop it in your mouth and relish the unique experience. It wont be too long before you find yourself asking the age old question Melody itni chocolaty kyon hai?' Mango Bite

Need a quick escape from everything ordinary? Just pop a Mango Bite and dive into a tropical mango paradise. Sit back, roll it around and enjoy one wave after another of juicy mango treats that go on and on and on.

Orange Candy

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Feel like eating an orange but dont want to be bothered with peeling one? How about just unwrapping one then? Parle Orange Candy. This little candy is a mouthful when it comes to the tangy, juicy taste of real oranges. A bitesized orange in a wrapper. Kachcha Mango Bite

The glider got copied and became a jet plane. Western hits got copied and became Anu Malik songs. The typewriter got copied and became a keyboard. Similarly, we have managed to copy the tangy flavour of raw mangoes in a candy which is a little sour, a little sweet and certainly a little mischievous. We call it Kaccha Mango Bite. It truly is a kacche aam ka copy.

Kismi Toffee

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Its everything that the Kismi Toffee Bar is, only smaller. Wrapped in the distinct flavour of elaichi (cardamom) this toffee is sure to send your sweet tooth on a joyride. Golgappa

Mention Golgappa to lovers of roadside snacks and watch them get excited. Just the very memory of the sweet tangy taste of Golgappa is enough to make the taste buds tingle, the mouth water and the senses to party. Now imagine if you can have the Golgappa whenever and wherever you want it, even as you are reading this, for example. It is possible with Parle Golgappa. It captures the same magic of the popular street side Golgappa in a Goli or a hard boiled candy, if you prefer. So pop in a Golgappa and treat your senses to a fun filled trip, whenever and wherever.

Parle Snacks: Salty, crunchy, chatpata and crispy caters to the bunch of Parle snacks. Parle snacks are a complete delight to the taste buds and can create the desire for more and more. These snacks will not only satisfy your tummy but will also sustain a feel in your mouth to associate you with the bond of Parle.

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Musst Bites

Cheesy fluffy baked snacks that are so irresistible that you dont want to share them. Available in mouthwatering Garden Spices, sweet and sour Tangy Tomato, tantalizing Chatpata Chat and heavenly garden spices, you are going to have a hard time deciding which one you want for yourself.

MAJOR BISCUIT RAJASTHAN

2) ITC SUNFEAST LIMITED

PRODUCERSS

IN

1) PARLE PRODUCTS PRIVATE LIMITED.

3) BRITANNIA 4) SURYA FOOD AND AGRO LIMITED (PRIYAGOLD). PARLE PRODUCTS PRIVATE LIMITED

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Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India, Parle has grown to become a multi-million dollar company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. Parle G, a premium glucose biscuit is the worlds largest selling biscuit. A factory of these glucose biscuits is situated in Neemrana is producing 7000 metric tonnes every month. A list of premium quality biscuits and confectioneries is produced and distributed across nations. ITC LIMITED

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brandbuilding capabilities, effective supply chain management.

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BRITANNIA

By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As time moved on, the biscuit market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indian ness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

SURYA FOOD AND AGRO LIMITED

The wondrous magical journey of the company Surya Food & Agro Ltd. began in Oct. 1993 & since then The Researchers have been one of the leading manufacturers of biscuits in northern India. Our brand PRIYAGOLD has been a perennial household favorite since then. On a profound level spread in to western as well as southern India, the inevitable cycle of distribution network has
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helped us to spread into western India as well. Our obsession is to make the finest quality biscuits available to the consumers & our constant endeavor is to provide our consumers, a palate to look forward to a taste & flavor that is uniquely PRIYAGOLD.

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33

.ANALYSIS After visiting the PARLE factory as industrial visit the researchers analyzed that the best selling branded biscuit company offers its customers with large variety of biscuits (parle-g, krack-jack, Monaco, hide and seek etc.), confectionaries (mangobite, melody, poppins) and snacks (Musst bites) It aims TO SERVE PEOPLE AND NATION The privately owned self financed company provides motivation and confidence to its staff and other related members by providing various facilities and organizing certain events. It has a very open work culture. The atmosphere is so comfortable and relaxed that helps in increasing productivity and efficiency. It lunches and outstation team-building exercises that augment inter-personal relations and mutual understanding. Parle has found its way into the Indian hearts and home. It spreads happiness and joy among the people of all ages. As one comes to visit their plant, they welcome them whole-heartedly and cooperate with them in the best way they can. They are the strict followers of Japanese culture.

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1. Analysis of unorganized retail outlets

1.1 Coverage of the company Table 1.1.1 BRAND PARLE Direct 367 Indirect 43 No Coverage 0

Chart 1.1.1

Interpretation: Parle covers all the retail outlets under study and 90% were under direct coverage i.e salesman of Parle distributor (of that area) visits weekly on these stores. Rest 10% outlets source the Parle products either from wholesaler or any other retail outlet.

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1.2 Categorization of retail outlets based on PARLE sales Table 1.2.1 CATEGORY CATEGORY ' A ' (No Coverage) CATEGORY ' B ' (1-5000) CATEGORY ' C ' (5001-10000) CATEGORY ' D ' (10001-15000) CATEGORY ' E ' (15001-20000) CATEGORY ' F ' (>20000) Chart 1.2.1 NO. OF OUTLETS 0 230 99 33 18 30 % SHARE 0.0 56.1 24.1 8.0 4.4 7.3

Interpretation:36

The above pie chart shows the classification of retail outlets present in areas under study. The categorization is made on the basis of monthly sales of Parle products by the retailers and the whole sellers. It has been divided into 6 categories mentioned above. There are no A category outlets as Parle covers all the Retail outlets under study whereas category B has highest share of 56% with 230 outlets and most of total retail outlets fall under Category B & Category C (80%) visited by the Researchers here. It can be seen that only 7% outlets fall under category E i.e greater than 20000 Rs 1.3 Visibility of PARLE products For Biscuits: Table 1.3.1 No. of shops 410 385 394 75 255 85 330 388 393 381 377 35 101 198 185 210 340 332

BRAND (Biscuits) Parle-G Krackjack Monaco Monaco Funion Hide&Seek Milano Orange Kream Mango Kream Elachi Kream Pineapple Chocolate Kream Golden Arch Nimkin Marie Milk Shakti Bourbon 20-20 Butter 20-20 Cashew

Total 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410

% VISIBLE 100.0 93.9 96.1 18.3 62.2 20.7 80.5 94.6 95.9 92.9 92.0 8.5 24.6 48.3 45.1 51.2 82.9 81.0

Chart 1.3.1
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Interpretation:Brands such as Parle G, Krackjack, Monaco, Orange Kream, Mango Kream, Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost all stores (90-100 %) but brands such as Monaco Funion, Golden Arch & Nimkin were not available in many stores.

For Confectionary:
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Table 1.3.2 BRANDS (Confectionary) GolGappa Classic Mint Lite Mint Kismi Orange Candy Mango Bite Melody Poppins Eclairs- 50 p Melody Softe- 1Rs. Kismi Bar Chox Kacha Mango Mazelo Imli Bite Kismi Gold Musst Bite No. of shops 258 136 108 222 300 337 352 222 168 146 165 155 177 160 97 45 43 Total 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 410 % VISIBLE 62.9 33.2 26.3 54.1 73.2 82.2 85.9 54.1 41.0 35.6 40.2 37.8 43.2 39.0 23.7 11.0 10.5

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Chart 1.3.2

Interpretation:The brands such as Orange Candy, Mango Bite & Melody have good availability but Kismi Gold and Musst Bite are rarely available .

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1.4 New Products Visibility Table 1.4.1 BRANDS (Confectionary) Nimkin Golden Arch Melody Softe- 1Rs. Mazelo Imli Bite Available 101 35 146 160 97 Not Available 309 375 264 250 313 Chart 1.4.1 Total 410 410 410 410 410 % VISIBLE 24.6 8.5 35.6 39.0 23.7

Interpretation: The newly introduced biscuit brand Golden Acrh was available in only 8.5 % retail outlets which is a very low figure. And Nimkin was present in only 25 % outlets. It appears that demand for their confectionary brands is increasing as they were present in considerable amount.

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1.5 Coverage with respect to competitors Table 1.5.1 BRAND PARLE ITC BRITANIA PRIYAGOLD Direct 367 308 305 281 Indirect 43 21 27 26 Chart 1.5.1 No Coverage 0 81 78 103

Chart 1.5.2

Chart 1.5.3
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Chart 1.5.4

Chart 1.5.5
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Interpretation: Among the competitors only Parle covers most of the outlets (90%) directly, rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia & Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage. This is the strength of Parle company.

1.6 Brand availability with respect to competitors

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BRAND PARLE ITC BRITANIA PRIYAGOLD Nil 0 81 78 103

Table 1.6.1 No. of Brands 1 to 5 6 to 10 20 88 227 85 193 99 112 144

11 to 15 302 17 40 51

Chart 1.6.1

Chart 1.6.2

Chart 1.6.3
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Chart 1.6.4

Chart 1.6.5
46

Interpretation:Parle in addition to a big share of direct coverage also has74% of outlets where 11 to 15 brands are present as compared to competitors viz ITC, Britannia & Priyagold having 4%, 10% & 13% respectively. Priyagold although has less coverage (75%) than competitors but where present were in good variety i.e 35% outlets has 6 to 10 brands compared to Parle (21%), ITC (21%), and Britannia (24%).

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1.7 Sales comparison with competitors Table 1.7.1 No. of ITC % outlets share (ITC) 81 194 85 31 13 6 19.8 47.3 20.7 7.6 3.2 1.5

Category 'A' (No Coverage) 'B' (1-5000) 'C' (5001-10000) 'D' (10001-15000) 'E' (15001-20000) 'F' (>20000)

No. of outlets (Parle) 0 230 99 33 18 30

Parle % SHARE 0.0 56.1 24.1 8.0 4.4 7.3

No. of outlets (Brit) 78 179 91 23 21 18

Britannia % share 19.0 43.7 22.2 5.6 5.1 4.4

No. of Priyagold outlets %share (Priyagold) 103 225 29 39 9 5 25.1 54.9 7.1 9.5 2.2 1.2

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Chart 1.7.1

Interpretation:It can be seen that in most of the outlets (56%) Parle sales come under category B as compared to other categories. Compared to competitors the company tops Category B. Company share in Category is also far higher than that of competitors. So, every company has sales of 1-5000Rs in 50 % outlets

1.8 Ranking of Biscuits Rank 1 2 3 4 5 6 Glucose

307 71 17 14 1 0

Cream
60 289 56 2 0 3

Table 1.8.1 Cookies Salty

5 4 1 0 41 359 9 25 157 119 88 12

Sweet and salty

3 1 18 97 256 35

Marie
26 20 161 178 24 1

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Chart 1.8.1

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Interpretation: Rank one is dominated by Glucose biscuits, Rank two by Cream biscuits, rank three by Marie and Salty biscuits both, rank four by Marie Biscuits but there is a close match between salty and sweet and salty, rank five by Sweet and Salty Biscuits and rank six by Cookies. So, lease demand is of cookies in unorganized retail stores.

2. Analysis on organized retail outlets

2.1 Parle Sales in Organized Retail Table 2.1.1 Category No coverage 'A' 'B' 'C' 'D' Sales 0 1-15000 15001-30000 30001-44999 >=45000 No. of outlets (Parle) 0 1 10 11 8

Chart 2.1.1
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Interpretation:It can be seen that 35% of outlets have Parle sales between 30,000Rs and 45,000 Rs which is a very good indication. And 27 % outlets have Parle sales above 45,000 Rs

2.2 Parle Sales with respect to competitors in organized retail outlets Table 2.2.1 No. of No. of outlets outlets (Parle) (ITC)
0 1 10 11 8 4 5 20 5 4

Category No coverage ' A' 'B' 'C' 'D'

Sales
0 1-15000 15001-30000 30001-45000 >45000

No. of outlets (Brit)

0 2 5 14 9

No. of outlets (Priyagold)

5 5 18 2 0

Chart 2.2.1

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Interpretation: In organized retail outlets Britannia beats Parle in Category C (30001-45000). And this is because Parle products are cheaper as compared to Britannia and so sales is high.

2.3 Parle Visibility in organized retail outlets

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BRAND (Biscuits) Parle-G Krackjack Monaco Monaco Funion Hide&Seek Milano Orange Kream Mango Kream Elachi Kream Pineapple Chocolate Kream Golden Arch Nimkin Marie Milk Shakti Bourbon 20-20 Butter 20-20 Cashew

Table 2.3.1 No. of shops 30 30 30 19 24 11 23 29 29 27 25 10 17 30 24 26 28 28

Total 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30

% VISIBLE 100.0 100.0 100.0 63.3 80.0 36.7 76.7 96.7 96.7 90.0 83.3 33.3 56.7 100.0 80.0 86.7 93.3 93.3

For Biscuits:

Chart 2.3.1

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Interpretation: Parle-G, Krackjack, Marie, Monaco have 100% visibility. Among the cream biscuits, Mango and elaichi were available in most outlets (97%). Parle 20-20 brands were also visible 93% of the outlets. Golden Arch and Milano were present in very less number of outlets (37% and 33% respectively).

For Confectionary: 55

BRANDS (Confectionary) GolGappa Classic Mint Lite Mint Kismi Orange Candy Mango Bite Melody Poppins Eclairs- 50 p Melody Softe- 1Rs. Kismi Bar Chox Kacha Mango Mazelo Imli Bite Kismi Gold Musst Bite

Table 2.3.2 No. of shops 23 15 13 19 23 23 29 22 21 17 17 12 22 10 7 8 8 Chart 2.3.2

Total 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30

% VISIBLE 76.7 50.0 43.3 63.3 76.7 76.7 96.7 73.3 70.0 56.7 56.7 40.0 73.3 33.3 23.3 26.7 26.7

Interpretation:
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Melody tops (97%) among the confectionary brands in visibility factor. Hard boiled candies such as Golgappa, Orange candy, Mango Bite, Poppins, Kaccha Mango and clairs have good visibility (Approx. 73-77%). But Melody softee, Kismi Bar have 57% visibility. Mazelo, Imli Bite, Kismi Gold have very low visibility. Parle`s snack product Musst Bite is also having very low visibility of 27%.

3. Analysis on Consumer Behaviour

3.1Type of biscuits preferred
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Biscuit Preferred Glucose Salty Sweet and Salty Kreams Cookies

Table 3.1.1 No. of consumers(out of 100) 38 08 15 25 14 Chart 3.1.1

Interpretation:The above graph shows the types of biscuits preferred by the consumers. Glucose is most preferred (38) by the consumers followed by kreams (25). Whereas Salty (8) holds the last position

4.1 Type of confectionary preferred Table 3.2.1

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Candies Hard boiled candy Eclairs Mint Bubble gum Bars

No. of consumers 34 27 9 12 18 Chart 3.2.1

Interpretation:The above graph shows the types of candies preferred by the consumers. Hard boiled candies like golgappa, kacha aam got the highest position followed by clairs and then bars. Mint got the least preference. 4.2 Preference between organized and unorganized retail stores to buy biscuits and confectionary Type of Store Table 3.3.1 Sales
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Unorganized retail (Kirana) stores Org. retail stores

76 24

Chart 3.3.1

Interpretation:The above pie chart shows the place from where people prefer to buy biscuits and confectionary. The study shows that 76% of people prefer to buy them from general kirana stores whereas 24% people prefer to buy from organized retail stores like spencers, Big bazaar or Reliance fresh.

4.3 Preference for the biscuit company Company Parle Table 3.4.1 No. of consumers 48
60

Britannia Priyagold Itc

27 7 18 Chart 3.4.1

Interpretation:The above pie chart shows the preference of consumers for biscuit company. The result shows that PARLE got the highest position followed by BRITANNIA and then ITC. PRIYAGOLD got the least preference by the consumers.

4.4 Preference to factors (Taste, Price & Brand image) Table 3.5.1 Chart 3.5.1

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Rank Rank1 Rank2 Rank3

Taste 96 4 0

Price 2 39 59

Brand Image 2 57 41

4.5 Preference according to taste Table 3.6.1

Britanni Rank rank1 rank2 Parle 41 33 a 33 39 62 17 19 Itc d 9 9 Priyagol

rank3 rank4

21 5

16 12

28 36

35 47

Chart 3.6.1

INTERPRETATION:- The scores of rank1 are multiplied by 1 , the scores of rank2 by 2 and so on. And the sum of all the ranks for the given companies is summed up to get the total scores. As Parle has got the minimum total, therefore it can be infer that consumers prefer Parle most when it comes to taste followed by Britannia and then ITC. Priyagold is least preferred by the consumers.

4.6 Preference according to price Table 3.7.1

Rank rank1 Parle 42 63 Britannia 16 ITC 11 Priyagold 31

rank2 rank3 rank4

29 17 12

20 33 31

15 27 47

36 23 10

Chart 3.7.1

INTERPRETATION:- Here Parle is the prime choice of consumers when price is given preference followed by Priyagold and then Britannia. ITC is least preferred by consumers in the case of price.

4.7 Preference according to brand image Table 3.8.1

Rank e Parl nia 64 Britan Itc old Priyag

rank1 rank2 rank3 rank4

28 32 23 17

39 36 19 6

19 21 31 29

14 11 27 48

Chart 3.8.1

INTERPRETATION:- As Britannia has got the minimum total, therefore it is preferred most by the consumers followed by Parle and then ITC. Priyagold is least preferred by the consumers in case of brand image.

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SWOT ANALYSIS OF PARLE PRODUCTS

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STRENGTH
1. Low price as compared to competitors 2. Sizeable market share in the country. 3. Offers variety of products under its brand. 4. Different sizes of packets are available. 5. An experienced team of sales and marketing executives. 6. Deep and effective coverage 7. Largest distribution system.

WEAKNESS
1. Breakage of biscuits while delivering to retailers 2. No proper replacement system for broken biscuits to retailers 3. Improper and irregular supply. 4. Less share in Premium biscuit market. 5. Dependent on its flagship brand, Parle-G 6. Poor packaging in family pack of glucose biscuits. 7. Lack of schemes for retailers and distributors.

OPPORTUNITY
1. Rising demand for innovative packaging in packaged foods. 2. Retaining loyal retailers or wholesalers. 3. Improving supply system for established brands. 4. Huge scope for some Parle products in medical shops. 5. Information revolution brought about by the television. 6. Good scope for snacks and namkeens, if launched and properly promoted by Parle.

THREAT
1. Highly advertised brands such as Britannia. 2. Ever increasing competition from multinationals and local companies. 3. Increase in sale of cheap local bakery products. 4. Emerging substitutes like wafers, snacks and toast. 5. Margin war among the major Brands

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FINDINGS

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After close study of the present market situation prevailing in the areas assigned the researchers, following are the observations. 1. Availability of all the products is not uniform in all the towns. For instance, the supply is not meeting the demand in particular areas or shops. 2. Golden Arch and Nimkin, newly launched products, have very less availability. 3. Breakage problem in the Family packs of glucose biscuits is leading to the decline in sales in this category. 4. Schemes, Discounts, offers, coupons etc. are not reaching to the retailers and customers whereas Priyagold and ITC on the other hand are doing that. 5. Retailers and even wholesalers are not satisfied with the supply system of Parle. 6. It was found that Parle (especially Parle- glucose) is most favored brand and is sold most. Parle biscuits are the retailers and consumers prime choice. 7. Very little range of Parle biscuits were visible in organized retail outlets. 8. Musst bites is not accepted by the general masses due to its dissatisfying taste. 9. Lack of marketing efforts for the promotion of new products like Golden Arch, Nimkin. 10. Britania is emerging as major Competitor in the organized retail outlets.

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RECOMMENDATIONS & SUGGESTIONS

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1. Company should start a program for the loyal retailers and wholesalers to reduce their complaints by providing timely supply and replacement. This will help in increasing their sales. 2. The packaging of Parle Glucose biscuits (1/2 and 1 kilogram packs) must be improved for its better sales. The company should come up with double packaging as people refuse to buy family pack biscuits with loose packaging. 3. Salesmen should be properly dressed and should have good communication skills to effectively promote the new products recently launched, by making sure that the product reaches each and every retailer and also increase the visibility of the products by arranging the product clearly on the shelf or rack and show its prominence. 4. To increase the number of stock keeping units {SKU} available in the retailers store. Each salesman should stress the retailers to keep the maximum SKUs and to maintain these SKUs throughout. With this, the replacement of the damaged and expired biscuits should be prompt and without any hassles, so that retailer can be saved from the loss of the expired and damaged goods. 5. Company should adopt innovative packaging techniques, as they have their own packaging unit as consumers are highly attracted towards new packaging. 6. The company should take proper measures that the schemes and offers are not gulped by the middlemen ,and that it benefits the retailers and customers.

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After conducting the survey on 410 unorganized retailers, 30 organized retailers and 100 customers, the researchers found that there is a bigger market for biscuits and hard boiled candy in unorganized retail stores if proper supply of goods without breakage is there.
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It was also concluded that Parle is the first preference of both the customers and retailers (Organized and unorganized both) because of its price and brand image. Brand Parle G dominates the volume-dominated biscuit market. Even in todays times when multinationals are beefing up their operations and trying to change the dynamics of the market, Parle Gs numero uno position is unchallenged. Its competitors have roped in superstars like King Khan and Sachin Tendulkar, but Parle G has only gone from strength to strength. Brand Parle G is iconic and has evolved over the years. Trust, relevance, affordability are its hallmarks, which have withstood pressures from the hyper-competitive marketplace. The Parle Biscuit brands, such as, Parle-G, Monaco, Krackjack, Marie Choice, Hide & Seek and confectionery brands, such as, Melody, Poppins, Mangobite enjoy a strong imagery and appeal amongst consumers across the world. Which has resulted into Parle-G being the worlds largest selling biscuit". The Parle name symbolizes quality, health and great taste. Constantly innovating and catering to new tastes PARLE-G has built its reputation. This can be seen from the success of its new brands such as Mazelo, Imli Bite etc. Parle Products Pvt Ltd., is now lagging in services to retailers because of improper supply and distribution in some areas and competitors taking advantage of these points.

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74

Retailer Survey:
Locality : Name of Outlet : Address : Contact No. : Parle Detail : Frequency : Weekly / Fortnightly Brand Representation : Y/N Parle-G Krackjack Monaco Monaco Funion Hide&Seek Milano Orange Kream Mango Kream Elachi Kream Pineapple Chocolate Kream Golden Arch Nimkin Marie Milk Shakti Bourbon 20-20 Butter 20-20 Cashew Competitor Information: Direct Covrage : ITC: Britania : PriyaGold: Frequency : ITC: Britania PriyaGold: No. of Brand available ITC: Britania PriyaGold: Sales per Month : ITC: Britania PriyaGold:: Which Category of Biscuits Sales More ( Give Ranking ) Glucose Cream Cookies Salty Sweet & Salty Marie GolGappa Classic Mint Lite Mint Kismi Orange Candy Mango Bite Melody Poppins Eclairs- 50 p Melody Softe- 1Rs. Kismi Bar Chox Kacha Mango Mazelo Imli Bite Kismi Gold Musst Bite Parler Sales Y/N YOUR OWN INNOVATION

Round /Rectangle Round /Rectangle Round /Rectangle Round /Rectangle Round /Rectangle

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Consumer Survey: NAME:AGE:PHONE NO.:1) How many members are there in your family? Ans2) Who initiates the shopping of groceries in your family? a) Male members b) Female memberc)children/teenager Ans. 3) From where do you prefer to buy biscuits? a) Kirana store b) Organized retail market (Like Reliance fresh, spencers, Big Baazar, etc.) Ans. (If answer is b please mention the name of retail chain) 5)Which biscuits do you prefer? a)glucose b)salty c)sweet and salty d)Creams e)cookies Ans. 6)What type of confectionary do you like the most? a)hard boiled candy b)eclairs c)mint d)bubble gum e)bars Ans. 8)Which brand do you prefer most? a)PARLE b)BRITANNIA c)PRIYAGOLD d)ITC Sunfeast Ans. e) Other

10)Rank the factors in order of preference when buying a biscuit?? Taste Price Brand image 11)Rank the following out of 5 in respect to the given factors FACTORS PARLE Taste Price Brand image BIBLIOGRAPHY ITC BRITANNIA PRIYAGOLD

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I.

KOTHARI .C.R. Research Methodology, New Delhi Vikas publishing House Pvt. Ltd.

II.

KOTLER PHILIP & KELLER KEVIN LANE ,Marketing Management ,Practice Hall ,New Delhi

III.

Websites: Google search: (www.google.com) wikipedia search: (www.wikipedia.com) www.parleproducts.com

A
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PROJECT REPORT ON BRAND REPRESENTATION OF PARLE PRODUCTS IN JAIPUR

In partial fulfillment of the requirement for the award of MASTER OF BUSINESS ADMINISTRATION
AT

SUBMITTED BY: NIKHIL VAID RAGHVENDRA SINGH PURAWAT

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